EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1)
The Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1) (the Determination) is made under paragraph 123TGA(c) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making this instrument in her own capacity, is also making this instrument on behalf of the Minister for Education and the Minister for Employment and Workplace Relations.
Background
Part 3B of the Act establishes an income management regime that applies to recipients of certain welfare payments. If a person is subject to the income management regime under Part 3B, the Secretary will deduct amounts from the person’s relevant welfare payments and credit those amounts to the person’s income management account. The Secretary may then debit amounts from the person’s income management account, in accordance with Part 3B, for the purpose of taking actions directed to meeting the priority needs of the person or his or her dependants.
Subdivision A of Division 2 of Part 3B sets out the various situations in which a person is subject to the income management regime. Section 123UFA, in that Subdivision, provides that a person is subject to the income management regime at a particular time if a voluntary income management agreement is in force in relation to the person. The term ‘voluntary income management agreement’ is defined in section 123TC of the Act as an agreement under section 123UM of the Act. Section 123UM provides that the Secretary can only enter into a voluntary income management agreement with a person if, among other things, the person’s usual place of residence is within a declared voluntary income management area. The term ‘declared voluntary income management area’ has the meaning given by section 123TGA of the Act. Section 123TGA provides that the Minister may, by legislative instrument, determine that a specified State, Territory or area is a declared voluntary income management area for the purposes of Part 3B of the Act.
The Family Responsibilities Commission and the Family Income Management Providers have received multiple requests from individuals on Age Pension and Carer Payments in Cape York who wish to be subject to income management. Under the current legislation, the recipients of these payments types in Cape York are not eligible for income management. The voluntary income management initiative provides for the Secretary and a person to enter into an agreement under which the person voluntarily agrees to be subject to the income management regime under Part 3B of the Act.
Purpose
The areas known as Aurukun, Coen, Hope Vale and Mossman Gorge in Queensland are each a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act. These areas are the four Cape York Welfare Reform communities.
The effect of the Determination is that once an area is determined to be a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act, a person whose usual place of residence is within a declared voluntary income management area may enter into a written agreement with the Secretary under which the person agrees to be subject to voluntary income management regime throughout the period when the agreement is in force.
Currently, recipients of Age Pension and Carer Payments in Cape York cannot be subject to income management. This instrument allows voluntary income management to be implemented for all category H payment types, which includes Age Pension and Carer Payments.
The Determination commences on the day after it is registered and ceases to have effect after 30 June 2010.
Consultation
Consultation on the Determination was undertaken with the Department of Education, Employment and Workplace Relations and the Department of Veterans’ Affairs to ensure a co-ordinated approach in respect of welfare payments, for which they have responsibility, which may become subject to the income management regime.
Consultations have also been held with Centrelink, the Family Responsibilities Commission, the Cape York Institute, the QLD Government Departments of Premier and Cabinet and Communities have indicated strong support for implementing the VIM model.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure. The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.
Overview
The Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1) was enacted to address the need for voluntary income management for certain welfare payment recipients in specified areas of Cape York. This determination is made under the authority of the Social Security (Administration) Act 1999 and was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Ministers for Education and Employment and Workplace Relations. The primary objective of this determination is to facilitate the implementation of a voluntary income management regime in the Cape York communities of Aurukun, Coen, Hope Vale, and Mossman Gorge, enabling recipients of Age Pension and Carer Payments in these areas to voluntarily participate in income management. This initiative responds to requests from individuals in these communities who wish to manage their welfare payments more effectively. The determination designates these Cape York areas as "declared voluntary income management areas," thereby allowing eligible residents to enter into agreements with the Secretary for voluntary income management, effective for the duration of the agreement.
Scope and Application
The Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1) is made under the authority of the Social Security (Administration) Act 1999 and applies specifically to the declared voluntary income management areas within Cape York, Queensland. These areas include Aurukun, Coen, Hope Vale, and Mossman Gorge, collectively known as the Cape York Welfare Reform communities. This Determination allows individuals residing in these areas who receive certain welfare payments, such as Age Pension and Carer Payments, to voluntarily enter into agreements to be subject to an income management regime. Under this regime, the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs will manage the income of those individuals by deducting amounts from their welfare payments and crediting them to an income management account. This account can then be used to meet the priority needs of the individual or their dependants, as directed by the Secretary. The Determination facilitates a coordinated approach to welfare payments that may become subject to income management, ensuring that relevant departments and agencies are aligned in their implementation. This legislation is not intended to have significant regulatory impacts, compliance costs, or competition effects.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1) (the Determination) include sections 123UFA, 123UM, and 123TGA of the Social Security (Administration) Act 1999 (the Act). Section 123UFA stipulates that a person is subject to the income management regime if a voluntary income management agreement is in force. Section 123UM establishes the conditions under which the Secretary can enter into a voluntary income management agreement, including the requirement that the person's usual place of residence is within a declared voluntary income management area. Section 123TGA allows the Minister to determine specified areas as declared voluntary income management areas for the purposes of the Act. This Determination specifically declares Aurukun, Coen, Hope Vale, and Mossman Gorge in Queensland as such areas, thereby enabling residents in these areas to enter into voluntary income management agreements.
The Determination imposes obligations on the parties involved, particularly the Secretary and the welfare recipients in the specified areas. The Secretary is tasked with entering into voluntary income management agreements with eligible individuals, ensuring that these agreements comply with the provisions of Part 3B of the Act. Welfare recipients, on the other hand, must agree to be subject to the income management regime as part of the voluntary agreement. This includes allowing the Secretary to deduct amounts from their welfare payments and credit those amounts to an income management account, which can then be used to meet priority needs as outlined in the Act.
Breaches of the obligations or requirements set out in the Determination can lead to various consequences. While specific offences and penalties are not detailed in the text, general provisions of the Act and related legislation may apply. For example, non-compliance with income management agreements could potentially result in administrative penalties or other consequences as prescribed under the Act. Additionally, the Determination highlights the importance of coordination with other government departments, such as the Department of Education, Employment and Workplace Relations and the Department of Veterans’ Affairs, to ensure a unified approach to welfare payments that may become subject to income management.
The Determination also mentions that it does not require a Regulatory Impact Statement or a Business Cost Calculator, indicating that it is not expected to significantly impact business activities or impose substantial compliance costs. The Determination's purpose is to facilitate voluntary income management in the specified areas for welfare recipients, with minimal regulatory burden. It aims to provide a framework for implementing the voluntary income management model in Cape York, supported by consultations with relevant stakeholders and government bodies.